Dec. 16 at 5:59 AM
$FBIOP $FBIO $DERM
Revised Oaktree terms in a nutshell:
The maximum TTM Minimum Net Sales seems to no longer be capped at
$80 million, and will start higher (minimum 60m EOY 2025, instead of 50m).
The minimum net sales test threshold will only grow by 5m per Q, instead of the original 7.5m per Q, and as such, will reach the 80m requirement EOY 2026.
Based on a combination of Journey's and analyst projections, the 60m 2025 threshold should be no problem, and 2026 is projected to be just under 100m in revenues. None of the new terms appear to be a default concern for Fortress (why would they amend it if they thought they would be?). Also important to note that there is currently only 29.5m outstanding under the loan.
New warrants (600,000 total) were not a surprise (this is biotech), and it's one of the reasons I feel more comfortable in FBIOP over FBIO at this time.
This class 1 on CUTX-101 was welcome news, and anticipated based on the recent Zydus conference call. GLTA